HSBC Looks To Axe Up To 10,000 Jobs To Cut Costs

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With HSBC's interim Chief Executive Officer (CEO) Noel Quinn seeking to reduce costs across the banking group, this is the bank's most ambitious attempt in years to do so. The jobs will mostly be those of high-paid roles, on account of increasing redundancies in the global banking sector, falling interest-rates, and uncertainties stemming from the global trade war and Brexit.

HSBC may announce the start of the newest cost-cutting drive and job cuts when it experiences third-quarter outcomes later this month, the FT mentioned, citing one particular person briefed on the matter. The reorganization at HSBC comes on top of a recently announced plan whereby 4,700 jobs will disappear. Chairman Mark Tucker looks keen to extend that push, weighing a bid for Asian operations put up for sale by London-based insurer Aviva Plc, people familiar with the matter said in August.

"Unite is appalled by press reports of 10,000 job cuts globally and has raised urgent questions with the management of the bank in order to get vital answers on behalf of our members working within HSBC", the Union responded.

The HSBC refused to comment.

'The cut to almost 0.4 per cent of the workforce is HSBC acknowledging the problems it faces from a slowing economy in China, unrest in Hong Kong and lower interest rates across the USA and Europe, ' said Jasper Lawler, head of research at London Capital Group.

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HSBC is planning to cut a whopping 10,000 jobs. The bank posted a group profit of $12.4 billion in the latest half-year, in which $9.8 billion was from Asia, with Hong Kong contributing $6.4 billion and China $1.5 billion.

According to a Business Insider report, over 60,000 bank jobs were cut in 2019. The Financial Times first reported the cuts.

During Flint's short tenure as CEO, the bank grappled with a declining stock price and a failure to hit cost targets.

It would affect "most parts of the bank", chief finance officer Ewen Stevenson said at the time.

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